Taiwan Inflation May 2016

Taiwan: Inflation moderates in May

June 7, 2016

In May, consumer prices fell 0.37% over the previous month, contrasting the 0.33% increase recorded in April. According to the Directorate-General of Budget, Accounting & Statistics (DGBAS), the reading reflected lower prices for vegetables and garments, which more than offset higher prices for fuels and lubricants.

Inflation was at 1.2% in May, coming below the 1.9% recorded in April and marking the lowest reading since January. Meanwhile, annual average inflation rose from 0.5% in April to 0.7% in May.

Core consumer prices, which strip out prices for electricity and fresh food, dropped 0.06% in May, contrasting the 0.66% increase tallied in April. Meanwhile, core inflation remained steady at the 0.9% reading tallied in April.

The government foresees inflation of 0.7% in 2016. FocusEconomics Consensus Forecast panelists expect consumer prices to fall 1.0% in 2016, which is up 0.1 percentage points from last month’s forecast. For 2017, the panel sees inflation rising to 1.3%.